What to do when load-shedding disrupts your AGM

By Auren Freitas dos Santos

In our post-COVID world most people are familiar and comfortable with the concept of virtual meetings.  This willingness to engage with each other in a virtual setting has made it much easier for sectional title schemes to conduct annual general meetings virtually.  In my experience, virtual AGMs have many advantages including:

1. An increased attendance by members
2. The use of electronic voting software
3. The ability to effectively manage participation during the meeting; and
4. The ability to make a video recording of the meeting.

However, notwithstanding all of its benefits, the virtual meeting has one major disadvantage . . . load-shedding!

Load-shedding is part of everyday life for South Africans and will continue to disrupt our lives into the foreseeable future.  Because at least 14 days’ written notice must be given for an AGM, it is nearly impossible to know if and when there will be load-shedding on the day of the AGM.  I have attended at least nine virtual AGMs in the last two months which were rudely interrupted by load-shedding, either during the meeting or even before the meeting starts.

Untimely load-shedding leaves bodies corporate with the dilemma of how to deal with the interruption caused to their AGM.  When load-shedding hits some bodies corporate believe that they need to call a new meeting with 14 days’ written notice, while others simply decide to continue with the AGM with the attendees that are lucky enough to have an alternative power supply.

However, in both instances the body corporate is wrong.  Firstly, it is unlawful to continue with the AGM if some members are unable to attend the meeting due to load-shedding because prescribed management rule 10(a) requires the virtual meeting to be accessible to all members and other persons entitled to attend the meeting. Secondly, it is not feasible or a legal requirement to call a new meeting with 14 days’ written notice.

So what is the right way to deal with an AGM that is disrupted by load-shedding?  

Guidance in these types of situations can be found in Prescribed Management Rule 18(3)(f), which states that the chairperson may adjourn the meeting, when it is not able to complete or continue with its business.  So, if load-shedding prevents a body corporate from starting or continuing with the business of the meeting, the chairperson simply needs to adjourn the meeting by notifying the members and advising them of the date and time of the adjourned meeting. This ensures that AGMs are not delayed unnecessarily and allows bodies corporate to deal with important AGM business timeously.

Specialist Community Scheme Attorney (LLB, LLM), Auren Freitas dos Santos, is a Director of The Advisory, a boutique consultancy specialising exclusively in community schemes law.

Contact him at www.theadvisory.co.za or email info@theadvisory.co.za should you have any questions regarding your AGM.